MIB605- Lecture 3 emarketing

Transcription

1 MIB605- Lecture 3 emarketing Jan 26 th, 2018 Prof. Cui 1

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3 Agenda Today Chaffey: Chapter 8- Digital Marketing (or e-marketing) Digital Marketing Plan Situational analysis for e-marketing E-marketing Objectives E-marketing Strategy (and segmentation, targeting, positioning) Tactics (7Ps) Online branding Consumers on the Internet (Consumer behavior) Digital Advertising strategies (Advertising) 1 Digital Marketing Definition 3

4 What is digital marketing? Digital marketing has been described simply as achieving marketing objectives through applying digital technologies (Chaffey and Ellis- Chadwick, 2012) Introduction Definition Digital marketing is focused on how a company and its brands use its website together with other digital platforms and media such as mobile sites and apps, search and social media and marketing to interact with its audiences in order to add value to its brand and so meet its marketing goals. Digital marketing can be considered to have a broader scope since it refers to any use of technology to achieve marketing objectives and has an external and an internal perspective. 4

5 Integration with overall marketing strategies! LU as an example! Digital marketing defined Digital Marketing Digital marketing, which can be considered to have a broader scope since it refers to any use of technology to achieve marketing objectives and has an external and an internal perspective. This is more consistent with the concept of digital business, which involves managing both internal and external digital communications. Inbound Marketing Inbound marketing is powerful since advertising wastage is reduced. Content and search marketing can be used to target prospects with a defined need they are proactive and self- selecting. (Earned media, KOL) Content Marketing Different content types such as videos and buyers guides on e-commerce sites can help attract visitors through search engines and, since engaging content is more likely to be shared within social media, encouraging visitors to a site. To break through the e- marketing clutter! An example: The Guardian, WWF 5

6 Content Marketing To break through the e- marketing clutter! An example: The Guardian, WWF 2 Digital Marketing Planning 6

7 Digital marketing planning Situation- Where are we now? Objectives- Where do we want to be? Strategy- How do we get there? Tactics- How exactly do we get there? Action- What is our plan? Control- Did we get there? SOSTAC- a framework for digital marketing planning 7

8 3 Situation analysis Inputs to the digital marketing plan from situation analysis Digital marketing plan comprises Situation analysis Digital marketing objectives Strategies for target markets Tactics for marketing mix: Product Price Place Promotion(communications mix) Actions, control and monitoring 8

9 The organization Opportunities-O 1 Cross-selling 2 New markets 3 New services 4 Alliances/co-branding Typical Internet SWOT analysis example Strengths-S 1 Existing brand 2 Existing customer base 3 Existing distribution SO strategies Leverage strengths to maximise opportunities=attacking strategy Examples: 1 Migrate customers to web strategy 2 Refine customer contact strategy across customer life cycle or commitment segmentation( , web) 3 Partnership strategy (co-branding, linking) 4 Launch new web-based products or value-adding experiences,e.g bideo streaming) Weakness-W 1 Brand perception 2 Intermediary use 3 Technology/skills(poor web experience) 4 Cross-channel support 5 Churn rate WO strategies Counter weaknesses through exploiting opportunities= bulid strengths for attacking strategy Examples: 1 Countermediation strategy(create or acquire) 2 Search marketing acquisition strategy 3 Affilate-based acquisition strategy 4 Refine customer contact strategy( ,web) Threats-T 1 Customer choice(price) 2 New entrants 3 New competitive products 4 Channel conflicts 5 Social network ST strategies Leverage strengths to minimise threat= defensive strategy Examples: 1 Introduce new Internet-only products 2 Add value to web services- refine OVP 3 Partner with complementary brand 4 Create own social network/customer reviews WT strategies Counter weaknesses and threats: bulid strengths for defensive strategy Examples: 1 Differential online pricing strategy 2 Acquire/create pure-play company with lower cost-base 3 Customer engaement strategy to increase conversion, average order value and lifetime value 4 Online reputation management strategy/e-pr Customer demand analysis: help to quantify objectives! What percentage of customer businesses have access to the Internet? What percentage of members of the buying unit in these businesses have access to the Internet? What percentage of customers are prepared to purchase your particular product online? What percentage of customers with access to the Internet are not prepared to purchase online, but are influenced by web-based information to buy products offline? What is the popularity of different online customer engagement devices such as Web 2.0 features such as blogs, online communities and video? What are the barriers to adoption amongst customers of different channels and how can we encourage adoption? 9

10 Competitor analysis: Competitor benchmarking has different perspectives which serve different purposes: 1. Review of internal capabilities 2. From core proposition through branding to online value proposition(ovp) 3. Different aspects of the customer life cycle 4. Qualitative to quantitative 5. In-sector and out-of-sector 6. Financial to non-financial measures 7. From user experience to expert evaluation. 4 Objective setting 10

11 Objective setting Effective digital marketing plans are based on clearly defined objectives since these will inform and help in communicating the strategies. Strategies are agreed to be most effective when they support specific business objectives. an example shows below Search Engine Optimization Online revenue contribution Definition: An assessment of the direct contribution of the Internet or other digital media to sales, usually expressed as a percentage of overall sales revenue. Figure 8.12 gives an example combining the online revenue contribution and the online promotion contribution as a forecast based on marketing research of demand analysis and competitor analysis. 11

12 Strategy of a digital marketing plan The strategy element of a digital marketing plan defines how digital marketing objectives will be achieved. Strategy definition has to be tightly integrated into the digital marketing planning process since digital marketing planning is an iterative process from situation analysis to objective setting to strategy definition. Market and product positioning Strategic alternatives can be evaluated using the options. As the risks involved with the four options of market penetration, market development, product development and both market and product development-diversification strategies. Today for consideration as part of digital marketing strategy, companies should ask the following questions 1. Can I offer additional information or transaction services to my existing customer base? 2. Can I address the needs of new customer segments by repackaging my current information assets or by creating new business propositions using the Internet? 3. Can I use my ability to attract customers to generate new sources of revenue such as advertising or sales of complementary products? 4. Will my current business be significantly harmed by other companies providing some of the value I currently offer? 12

13 Target market strategies We need to analyze the target market in more detail to understand their needs and potential and then develop a strategy to satisfy these markets to maximize revenue. This is target marketing strategy and involves the four stages shown below. Target market strategies 13

14 Content strategy It requires (company need to know) Quality, compelling content content is still king! Quality writers to create quality content who may be internal staff or external freelance writers. An editorial calendar and appropriate process to schedule and deliver the content. Investment in software tools to facilitate the process. Investment in customer research to determine the content their different audiences will engage with. Careful tracking of which content engages and which does not. 5 Strategy Characteristics of digital media communications 14

15 The differences between the new media and traditional media has been developed by McDonald and Wilson as the 6 Is of digital marketing Interactivity Interactivity is a key characteristic of the Internet. Traditional media have limited interaction with the customer. Pull & push marketing communication Internet encourage two-way communication and extend the direct-response approach 15

16 Intelligence mining! Example Internet is a relatively low-cost method of collecting marketing research, particularly about customer perceptions of products and services. Internet can be used to create two-way feedback which does not usually occur in other media: responded main concerns of the customer and explain what they were trying to do to resolve this problem. Potentially companies can respond in real time to buyer behavior. Individualisation Another important feature of interactive marketing communications is that they can be tailored to the individual Unlike traditional media where the same message tends to be broadcast to everyone The process of tailoring is also referred to as personalisation and is an important aspect of achieving customer relationship management online. There have two different personlisation (Two examples for this) 16

17 Example 1 : Customers can customize products according to their preference. Place your screenshot here Example 2 : online recommendation agents! There is an example for Taobao, according to the customer in taobao's browsing history, they will have a function like guess what you like, and then recommend you similar products. Besides, it s also have another recommendation which from other customers also will buy. 17

18 Integration The Internet provides further scope for integrated marketing communications. This figure show that there are many different media channels between company and customer. And this channel are also offered by intermediaries. Integration Mixed-mode buying: The process by which a customer changes between online and offline channels during the buying process. It is a key aspect of devising online marketing communications since the customer should be supported in changing from one channel to another. 18

19 Industry restructuring Disintermediation, reintermediation and countermediation are key concepts of industry restructuring that should be considered by any company developing a digital marketing strategy. Disintermediation: sales their product directly. Reintermediation: some customers still need help and suggestion when they buy the product, so this creates new mediation. Countermediation: build or buy existing medium Independence of location Electronic media also introduce the possibility of increasing the reach of company communications to the global market. This gives opportunities to sell into international markets that may not have been previously accessible. The Internet makes it possible to sell to a country without a local sales or customer service force. 19

20 6 Tactics Marketing Mix There are varying different elements of the offering to influence the demand for products within target markets. 20

21 Product Internet-related product decisions can be usefully divided into decisions affecting the core product and the extended product. Core product: The fundamental features of the product that meet the user s needs. Extended product: Additional features and benefits beyond the core product. In some cases, an online version of the product may be more valuable to customers in that it can be updated more regularly. The Internet also introduces options for mass customization of products. Mass customization: Using economies of scale enabled by technology to offer tailored versions of products to individual customers or groups of customers. Product Companies can also consider how the Internet can be used to change the range or combination of products offered. Bundling is a further alternative. Bundling: Offering complementary services. Example: When you buy earplug, the seller will offer other goods for you. Like this eye-patch. You can use very favorable price to buy 2 products. 21

22 Product Companies such as publishers, TV companies and other media owners who can offer digital products such as published content, music or videos now have great flexibility to offer a range of product purchase options at different price points including: Subscription Pay-per-view Bundling Ad-supported content The implication of the Internet and globalization is that to remain competitive, organisations will have to roll out new products more rapidly to international markets. Word-of-mouth communication has a tremendous impact on the rate of adoption of new products and we can suggest this effect is often enhanced or facilitated through the Internet. Price Price variable: Price element of the marketing mix that involves defining product prices and pricing models. Pricing models: Describe the form of payment such as outright purchase, auction, rental, volume purchase and credit terms. 22

23 Price The main implications of the Internet for the Price aspect of the mix are as follows: 1 Increased price transparency and its implications on differential pricing (offline, online: web, mobile, app differences are disappearing!) 2 Downward pressure on price (including commoditization) 3 New pricing approaches (including dynamic pricing and auctions) 4 Alternative pricing structure or policies Price 3 New pricing approaches (including dynamic pricing and auctions) Dynamic pricing : Uber (Adjusting price according to the relation between market supply and demand) 23

24 Price 3 New pricing approaches (including dynamic pricing and auctions) Aggregated buying : Taobao A form of customer union where buyers collectively purchase a number of items at the same price and receive a volume discount. Price 4 Alternative pricing structure or policies The Internet offers new options such as payment per use, rental at a fixed cost per month or a lease arrangement. Further pricing options which could be varied online include: a. Basic price b. Discounts c. Add-ons and extra products and services d. Guarantees and warranties e. Refund policies f. Order cancellation terms 24

25 Place Place: The element of the marketing mix that involves distributing products to customers in line with demand and minimising cost of inventory, transport and storage. The main implications of the Internet for the place aspect of the mix: 1 Place of purchase 2 New channel structures 3 Channel conflicts 4 Virtual organisations Place 1 Place of purchase In a B2B context, e-commerce is conducted on the manufacturer s own site, at an intermediary or is procured on a customer s site. 2 New channel structures New channel structures such as changes introduced by disintermediation, reintermediation and countermediation. 25

26 Place 3 Channel conflicts A significant threat arising from the introduction of an Internet channel is that while disintermediation gives a company the opportunity to sell direct and increase profitability on products, it can also threaten distribution arrangements with existing partners. Internet channels can take these forms: a communication channel only; a distribution channel to intermediaries; a direct sales channel to customers; any combination of the above. Promotion Promotion: The element of the marketing mix that involves communication with customers and other stakeholders to inform them about the product and the organisation. Specification of the promotion is usually part of a communications strategy. This will include selection of target markets, positioning and integration of different communications tools. The Internet offers a new marketing communications channel to inform customers of the benefits of a product and assist in the buying decision. 26

27 Break 7 Online branding 27

28 Online branding How to build successful online brands? Organisations should consider how their proposition can build on these possible brand promises: the promise of convenience making a purchase experience more convenient than the real-world one, or that with rivals; the promise of achievement to assist consumers in achieving their goals, for example supporting online investors in their decision or supporting business people in their day-today work; the promise of fun and adventure this is clearly more relevant for B2C services; the promise of self-expression and recognition provided by personalisation services; the promise of belonging provided by online communities. De Chernatony (2001) suggests successful online branding requires delivering three aspects of a brand: rational values, emotional values and promised experience. Online branding The importance of brand online The Internet presents a double-edged sword to existing brands. A consumer who already has knowledge of a brand is more likely to trust it, but loyalty can be decreased because the Internet encourages consumers to trial other brands. Key aspects of creating a positive customer experience are: Content quality. Adequate performance of website infrastructure in terms of availability and download speed. Ease of contacting a company for support. Quality of response to enquiries and fulfi lment quality. Acknowledgement of customer privacy. Reflecting and supporting the characteristics of the offline brand. 28

29 8 Consumer Online Consumer Online: The Internet Audience and Consumer Behavior Internet Traffic Patterns: The Online Consumer Profile 3.2 billion people had access to the Internet (2017). However, the growth rate has slowed. The E-commerce business can t count on double-digit growth rate in the online population anymore. The usage intensity and scope has increased: greater amount of time spent (e.g., 2 hours a day), more devices (e.g., mobile smartphones and tablets). About 51% internet users access the Internet with a mobile device. 29

30 Consumer Online: The Internet Audience and Consumer Behavior Community Effects: Social Contagion in Social Networks For physical retail store, the most important factor in shaping sales is location, location, location. On the Internet, what makes a difference is whether the consumer is located in the right place to connect with neighbors: face-to-face and truly personal, or digital. Consumer Online: The Internet Audience and Consumer Behavior Online vs. Offline Purchasing Decision Process 1-Need recognition 2-Search 3-Evaluation of alternatives 4-Purchase 5-Post-purchase behavior Offline communication Online communication Mass media TV Radio Print Media Social Networks Targeted banner ads Targeted event promotions Social Networks Catalogs Print ads Mass Media Store Visits Social Networks Search engines Online catalogs Site visits Targeted Social Networks Reference groups Opinions leaders Mass media Store visits Social Networks Search engines Online catalogs Site visits Product reviews User evaluations Social Networks Promotions Direct mail Mass media Print media Online promotion Lotteries Discounts Targeted- Flash sales Warranties Service calls Parts and repair Consimer groups Social Networks Communities of consumption Newsletters Customer Online updates Social Networks Social network plays many major roles in affecting the decision process. 30

31 Consumer Online: The Internet Audience and Consumer Behavior Shoppers: Browsers and Buyers 11% 16% 73% Did not shop or buy online Shopped online but did not buy Online buyers E-commerce is a generator of offline commerce. Online traffic is also driven by offline brands and shopping. Why 27% don t buy? Trust factor online merchants will cheat you; lose your credit card information; use personal information you give them to invade your personal privacy; bombarding you with unwanted and pop-up ads. Hassle factors Shipping costs and arrangement, returns, and inability to touch and feel the product, Consumer Online: The Internet Audience and Consumer Behavior Shoppers: What shapes the decision to purchase? Utility and Trust Utility (value): good deals, bargains, convenience, and speed of delivery Is determined by perceived benefits/ price Trust: Sellers can develop trust by building strong reputation of honesty, fairness, and delivery of quality products. Being transparency in pricing, for example. What is a fair price? pricing is equal parts economics and psychology 31

32 9 E-Marketing Strategy Digital Advertising Strategies Multiple Channels to meet your prospective online shoppers Type of Marketing Platforms Function Web Site Traditional Website (Ford.com) Anchor Site Traditional Online Marketing Search Engine Marketing (Google) Display advertising (Google) Social Marketing Social networks (Facebook) Micro blogging sites (Twitter) Blogs/forums (Pinterest) Mobile Marketing Video marketing (YouTube) Game marketing(candy Crush) Smartphone/Tablet site (m.ford) Apps Query-based intention marketing Interest-and context-based marketing; targeted marketing Permission marketing Conversations, sharing News, quick updates Communities of interest; sharing Engage; inform Identification Quick assess, news, updates Visual engagement 32

33 Digital Advertising Strategies a) Web Site: Establish the customer relationship and create customer experience, including the search, informing, purchase, consumption, and after-sales support for its products, services, and various retail channels. Digital Advertising Strategies b) Traditional Online Marketing: Consider Internet as an alternative way for advertising. Online advertising: a paid message on a Website, online service, or other interactive medium. Online advertising spending for selected formats (in Billions) Format Average growth rate Paid Search $19.6 $ % Banner ads $8.6 $ % Video $4.1 $ % Classifieds $2.7 $ % Rich media $2.0 $ % Lead generation $1.9 $ % Sponsorships $1.9 $ % $0.23 $ % Ad targeting: the sending of market message to specific subgroups in the population. Meets needs and wants, interests. Potential price discrimination. 33

34 Digital Advertising Strategies Banner ad Displays a promotional message in a rectangular box at the top or bottom of a computer screen. Rich media ad Ad employing animation, sound, and interactivity, using Flash, HTML 5 Java, and JavaScript. Video ad TV-like advertisement that appears as an in-page video commercial or before, during, or after content. Digital Advertising Strategies c) Social marketing Affiliate marketing Commissions paid by advertisers to affiliate Web sites for referring potential customers to their Web site (performance-based paying: the affiliate or affiliate network gets paid only if users click on a link or purchase a product). Bloggers. Viral marketing The process of getting customers to pass along a company s marketing message to friends, family, and colleagues. Social marketing/advertising: using social network 34

35 Digital Advertising Strategies c) Mobile marketing Consider mobile phone as a device for marketing Incorporate location to provide targeting marketing (GPS) Offer real-time and relevant ad to consumers (GPS, or RFID) Search Engine Marketing It is a primary way of finding information about a company and its products. Example: How does google engine work? Crawling to identify relevant pages for indexing and assess whether they have changed. It is performed by software process. Indexing created to enable the search engine to rapidly find the most relevant pages containing the query typed by the searcher. 35

36 Search engine marketing (SEM) Ranking and scoring to assess the most relevant set of documents to return in search engine results pages. Query request and results serving The use s location is assessed through their IP address and the query is then passed to a relevant data center for processing. Search Engine Optimization Search engine optimization(seo) A structured approach used to improve the position of a company or its products in search engine natural or organic results listing for selected key phrases. Common factors are influence search engine rankings: Frequency of occurrence in body copy Number of inbound links Title HTML tag Meta-tags Alternative graphic text 36

37 Something that need to pay attention to! Researches indicates that internet users rarely type website addresses into the browser bars they locate them through search engines such as Google and Baidu It is necessary for the company to promote search rankings by improving their website s structure and content It is important for them to appear as possible to the top of search engine results for a set of keywords Online PR Defines as the management of reputation. The planned and sustained effort to establish and maintain goodwill and mutual understanding between an organization and its publics. Activities: 1. Communicating with media (journalists) online Internet is a new channel to spread press releases through and on-sites. 37

38 Blogs and podcasting ( 播客 ) Blog is an online diary or news source prepared by an individual or a group of people. Podcasts are individuals and organizations post online media which can be accessed in the appropriate players including the ipod which first sparked the growth of this technique. Online communities and social networks A group of people who come together for a specific purpose. It is important for organizations to determine how their audiences use social networks and assess the opportunities to reach and interact with them. It is a opportunity to develop a deeper relationship with customers. 38